notices

We have been informed by our US Broker regarding section 1446(f) tax regulations from the US Internal Revenue Service that will go into effect on 1 January 2023. The new section introduces 10% gross proceeds withholding on sales of PTPs by non-US resident account holders, unless a qualified notice exception is provided by a Publicly Traded Partnerships (PTP).

Generally, section 1446(f) regulations impose 10% withholding when there is a "sale, exchange, or other disposition" on securities classified as partnerships for US tax purposes. For example, Master Limited Partnerships (MLP), PTP, and some Exchange Traded Funds (ETF) are classified as such.

Consequently, we will be restricting new purchases of the affected counters on a best-effort basis. Sales of existing holdings will not be restricted. Clients are advised to trade with caution.

Please click here to view the list of 1446(f) securities. If any of these securities are held by non-US resident account holders on and after 1 January 2023, they will be subject to the new 1446(f) regulations.

If you have any queries, please check with your Trading Representative.